PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩437 per share · Prices as of the 2026-10-02 close
Able C&C has shrunk its domestic offline footprint while concentrating on overseas expansion of Missha and APieu, entering a phase where revenue has contracted but profitability has clearly improved.
Q2 2026 revenue reached KRW 65.2bn (+5% YoY) with operating profit of KRW 10.4bn (+52.5% YoY), an earnings surprise.
Overseas revenue mix expanded to 75% in Q2, led by the US (+154%) and Europe (+48%, a record quarterly high).
Operating losses occurred in Q3 2025 due to domestic store and duty-free exits, but the company returned to profit for four consecutive quarters from Q4 onward.
Controlling shareholder IMM Private Equity is pursuing a carve-out sale of the APieu brand, with the process still uncertain.
Annual revenue actually declined between 2022 and 2025, even as the operating margin improved from roughly 4% to the 7% range.
Able C&C is a first-generation roadshop cosmetics company that launched the Missha brand in 2000, and has operated Missha and APieu as its two core brands alongside Chogongjin, Stila, and Cellapy.
The company is currently in a transition period, progressively closing low-margin domestic directly-operated stores and duty-free channels while restructuring its business around overseas channels, particularly the US and Europe.
Domestically, it has adopted a selective strategy focused on online platforms such as Musinsa, 11st, Gmarket, and Naver, along with health-and-beauty and variety channels like CJ Olive Young and Daiso.
Overseas, after establishing a foothold in digital commerce through Amazon and TikTok Shop, the company has been expanding into large offline retailers including Boots and Superdrug in the UK, DM in Germany, Douglas in Italy, and Primor in Spain.
In Europe, expansion of sales at existing channels such as Boots, Superdrug in the UK and DM in Germany, together with new offline stores such as large supermarkets in Russia, roughly doubled the number of selling stores year over year.
More recently, the company entered Brazil for the first time, raising the possibility of expanding across the entire Latin American market.
Its controlling shareholder is private equity firm IMM Private Equity, which acquired Able C&C in 2017 through the special purpose company Leaf&Vine and currently holds a 61.52% stake. IMM PE is reportedly preparing a staged exit, having considered a plan to first sell the flagship APieu brand and later sell Missha.
Competitively, Missha, as a first-generation roadshop brand, is fighting for survival between large incumbents such as Amorepacific and LG Household & Health Care, and fast-growing indie brands such as Joseon, Anua, Biodance, and Tirtir, through channel and product redesign.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩67.7B | ₩7.2B | 10.6% |
| 2025Q3 | ₩59.5B | -₩1B | −1.6% |
| 2025Q4 | ₩54.6B | ₩6.5B | 11.9% |
| 2026Q1 | ₩61.4B | ₩9.4B | 15.4% |
| 2026Q2 | ₩65.2B | ₩10.4B | 16.0% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩247.9B | ₩10B | ₩900M | 4.0% | 0.8% | 68.4% |
| 2023 | ₩273.6B | ₩11.4B | ₩6.1B | 4.2% | 7.0% | 98.3% |
| 2024 | ₩264B | ₩19.7B | ₩14.5B | 7.5% | 15.9% | 74.3% |
| 2025 | ₩242B | ₩18B | ₩14.1B | 7.4% | 16.3% | 89.1% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-21
Full-year 2025 revenue came to KRW 242.0bn, down 8.3% from KRW 264.0bn in 2024, while operating profit reached KRW 18.0bn (7.4% operating margin), continuing an improved margin trend versus KRW 11.4bn (4.2%) in 2023 and KRW 10.0bn (4.0%) in 2022.
Net income attributable to owners rose from KRW 0.9bn in 2022 to KRW 6.1bn in 2023 and KRW 14.5bn in 2024, then eased slightly to KRW 14.1bn in 2025, reflecting a temporary operating loss of KRW 0.95bn (net loss of KRW 0.33bn) in Q3 2025 tied to the exit from domestic directly-operated stores and duty-free channels.
On a quarterly basis, after revenue of KRW 67.7bn and operating profit of KRW 7.2bn in Q2 2025, the company swung to a loss in Q3 before recovering in Q4 with revenue of KRW 54.6bn, operating profit of KRW 6.5bn, and net income of KRW 6.0bn.
Q1 2026 revenue jumped to KRW 61.4bn with operating profit of KRW 9.4bn and net income of KRW 8.9bn, and Q2 2026 revenue reached KRW 65.2bn with operating profit of KRW 10.4bn and net income of KRW 9.2bn, tracing a clear upward trajectory across recent quarters.
Cumulative net income attributable to owners over the most recent four quarters (Q3 2025 through Q2 2026) totaled KRW 23.8bn, already exceeding both full-year 2025 (KRW 14.1bn) and full-year 2024 (KRW 14.5bn) net income.
The debt ratio moved from 68.4% in 2022 to 98.3% in 2023, then to 74.3% in 2024 and 89.1% in 2025, fluctuations tied to changes in equity (from KRW 116.1bn in 2022 to KRW 86.6bn in 2025).
Operating cash flow bottomed at KRW 5.3bn in 2024 before surging to KRW 35.6bn in 2025, showing that the profitability recovery has also translated into improved cash generation.
Overall, while total revenue has contracted, margin improvement from pruning low-margin channels and expanding overseas exposure stands out as the core driver of recent quarterly results.
Korean cosmetics exports have continued to post record highs through the first half of 2026.
According to Korea Customs Service trade statistics, cosmetics exports in the first half (January-June) of this year totaled USD 5.728 billion, the largest first-half figure since the agency began compiling related statistics in 2000.
The main growth drivers have shifted from large brands to small and indie brands, as an analysis of customs clearance data by the Ministry of SMEs and Startups showed that SME cosmetics exports in the first half of this year reached USD 5.07 billion, up 30.7% from the same period last year.
By region, the US has become the largest market, with Korean cosmetics exports totaling USD 7.0 billion in the first half of 2026, of which the US accounted for USD 1.45 billion, up 41.5%.
However, the trade environment is not entirely favorable: starting in August 2025, a 15% IEEPA reciprocal tariff was added on top of all items., and on top of that the US Trade Representative confirmed tariffs of 10-12.5% on 60 countries citing forced-labor production concerns, layering additional tariff burdens.
In a change affecting small direct-shipment volumes, the USD 800 de minimis duty-free exemption was abolished for all countries including Korea as of August 29, 2025.
Industry observers note that established brands such as Medicube, Anua, D'Alba, and Beauty of Joseon are scaling up significantly, and new brands like Ingredienter and Sallymax are also making strong gains, while indie-brand-led K-beauty growth is likely to continue for now given Korean cosmetics have begun appearing widely on US and European offline shelves since late last year.
Against this backdrop, Able C&C, as a first-generation company with the proven Missha brand asset, is positioned to respond through channel restructuring amid the dual pressures of intensifying competition from emerging indie brands and expanding tariff burdens.
For the second half of 2026, the company has set out a strategy of expanding growth in the US and Europe, strengthening its push into emerging markets such as the Middle East and Latin America, and expanding a skincare-centric portfolio and new categories.
CEO Shin Yu-jeong stated that in the second half the company would further expand growth momentum in the US and Europe, strengthen its push into growth markets such as the Middle East and Latin America, and create new growth opportunities through a skincare-centric product portfolio and new category expansion.
The company has stated that among first-generation K-beauty brands, Missha is the only case that has successfully adapted to the changed competitive environment by redesigning its channels, marketing, products, and organization all at once.
Its push into Latin America is already taking concrete shape, as the company entered the Brazilian market for the first time based on its proven product strength and digital marketing success in the US market, and Missha served as an official sponsor of the 'Salvador Carnaval 2026' festival in February.
Domestically, the company had disclosed a material report on suspension of operations covering the exit from domestic directly-operated stores and duty-free outlets, with the duty-free business closing by the end of that month and offline stores closing sequentially by contract expiration through August 24 of the following year, suggesting that by now most of this withdrawal schedule has likely been completed.
However, the APieu brand carve-out sale pursued by controlling shareholder IMM PE, as of a December 2025 report, had selected Samjong KPMG as sale advisor and distributed teaser letters to potential buyers to formally begin the sale process, though market response was reportedly lukewarm, and no further concrete progress has been confirmed since, leaving the direction of brand portfolio restructuring fluid.
The share price has been re-rated over recent quarters reflecting the transition from losses to profit and steady quarter-on-quarter earnings improvement, with the price-to-book ratio trading toward the upper end of the multi-year band it has occupied historically.
This can be read as a segment where a certain premium over net asset value has formed, suggesting the market has already priced in a substantial portion of the overseas expansion and margin improvement.
The dividend yield sits below the sector average, consistent with the company prioritizing resources toward channel restructuring and overseas expansion rather than dividends.
Over a multi-year view, the company has been moving away from a low-margin, loss-making phase toward a more stable profit trend, and whether this earnings recovery proves durable is seen as the key variable for future valuation.
At the same time, the controlling shareholder's pursuit of a brand carve-out sale and the shrinking domestic revenue base coexist as variables, meaning market views on valuation could diverge.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-21
Overseas revenue mix expanded to 75% in Q2 2026, with high growth centered on the US and Europe driving results. US revenue surged 154% in Q2 and Europe grew 48%, marking a record quarterly high.
The strategy of reallocating resources from low-margin domestic channels to high-growth overseas channels has translated into operating margin improvement.
Growth has also been even across China, the Middle East, and other Asian markets, diversifying the portfolio without concentration in any single region. The company recently entered Brazil for the first time, opening up the possibility of expanding across Latin America.
This diversification strategy tailored to regional growth stages and distribution environments lowers dependence on any single market.
Through restructuring that closed low-margin domestic directly-operated stores and duty-free channels, revenue scale has shrunk but the operating margin has improved from around 4% to the 7% range.
Cumulative net income over the most recent four quarters has already exceeded full-year net income levels, showing a rapid pace of earnings recovery. Operating cash flow has also improved in tandem, expanding financial flexibility.
The exit from directly-operated stores and duty-free channels has structurally shrunk the domestic revenue base, and annual revenue itself has actually trended lower since 2022. If the controlling shareholder's pursuit of an APieu carve-out sale materializes, dependence on Missha as a single brand could deepen further.
Such single-brand concentration is a factor that could amplify earnings volatility if that brand's growth were to slow in the future.
Controlling shareholder IMM Private Equity has a history of repeatedly reviewing and withdrawing sale plans since its 2017 acquisition, and while it is currently pursuing a carve-out sale of APieu, reports indicate market response has been lukewarm.
The direction of brand portfolio restructuring and any governance changes remains unconfirmed, keeping uncertainty elevated. Shifts in this exit strategy could affect business planning or investment priorities.
Following the 15% reciprocal tariff applied from August 2025, additional tariffs based on forced-labor concerns have further raised the cost burden on US exports. The abolition of the de minimis duty-free exemption could also affect small-scale exports through online channels.
As the US share of revenue has grown, sensitivity to changes in the tariff and trade environment has increased in tandem.
The overlap of a 15% US reciprocal tariff, additional forced-labor-related tariffs, and the abolition of the de minimis exemption could worsen the cost structure of US exports. If the tariff burden is passed through to prices, there is a risk of demand slowdown. Tariff policy could change further depending on political variables, warranting continued monitoring.
Changes in controlling shareholder IMM PE's exit strategy (repeated pursuit and withdrawal of sale processes, consideration of an APieu carve-out) make the direction of brand portfolio and capital allocation fluid.
If the carve-out sale is realized, it could create a dual burden of revenue loss and deepened single-brand dependence. Continued monitoring of governance-related disclosures is warranted.
Globally, indie brands such as Beauty of Joseon, Anua, and Tirtir are growing rapidly, while domestically Chinese C-beauty brands are also gaining ground. If growth concentrates on a handful of hit brands and products, brands losing competitive ground could face valuation discount pressure.
The performance of Missha and APieu's new products and category expansion will be a key point to watch in responding to this competitive landscape.
Q3 2026 earnings are expected to be released, providing a checkpoint on whether the overseas revenue growth and operating margin improvement seen through Q2 have continued.
Progress on the APieu carve-out sale being pursued by controlling shareholder IMM PE (buyer confirmation, deal terms) should be checked, as it is a key variable shaping the future brand portfolio.
The detailed implementation of the additional US forced-labor-related tariff (10-12.5%) and the actual impact of the de minimis abolition on the profitability of US exports should be checked.
It will be worth checking whether the expansion of new offline retailer listings in Europe, the Middle East, and Latin America, and revenue contribution from newly entered markets such as Brazil, are reflected in upcoming quarterly results.
Able C&C has undergone a structural shift, closing low-margin domestic channels and reallocating resources toward overseas channels in the US and Europe, resulting in a smaller revenue base but a clearly improving trend in operating margin and net income.
Results in Q1 and Q2 2026 showed continued quarterly improvement alongside an expanding overseas revenue mix, and cumulative net income over the most recent four quarters has already exceeded full-year net income levels.
However, with the domestic revenue base shrinking, a potential realization of the APieu carve-out sale being pursued by controlling shareholder IMM PE could deepen dependence on Missha as a single brand, leaving the direction of the brand portfolio still fluid.
External variables such as changes in US tariff and trade policy and the abolition of the de minimis exemption also carry greater influence on results given the higher overseas revenue mix.
In a K-beauty industry environment growing more competitive amid the rise of indie brands, whether Missha can sustain its structural improvement through channel and product redesign remains the key variable for future earnings.
Before making any investment decision, it is worth continuing to monitor the next quarterly results, progress on the APieu sale, and changes in tariff policy.
Report written 2026-09-05 · Data as of 2026-09-04
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